Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 2

OCB files, lot 62 D 430, “Germany I”

No. 774
Staff Study Prepared in the Department of State¹

secret

Washington, June 14, 1954.

HICOG’s Recommendations for U.S. Support of East Zone Projects

the problem

To determine whether HICOG’s recommendations² for U.S. support of programs designed to encourage and strengthen residents of East Germany during the second half of 1954 should be approved.

hicog’s proposals

The High Commission for Germany has recommended for favorable action a threefold program of aid, welfare, and educational assistance for East Zone residents during the second half of 1954. These projects will cost approximately $2,850,000. They are designed to further the policy set forth in paragraph 8–d of the NSC 5404/1,³ which calls for continuing funds for special projects designed to influence the people of the Soviet Zone and Sector. The projects have been selected after careful screening as to their probable effectiveness in furthering that policy, and as to their administrative feasibility.

These projects have been studied over a six-month period. Some of them were presented and discussed in the OCB working group on PSB D–21⁴ late in 1953. No positive recommendation was made to the Board at that time, because it was judged inadvisable to act in this field immediately prior to the Berlin Conference. However, HICOG was asked to continue its studies and told that consideration would be given to their recommendations without delay.

The recommendations are the result of searching study of the German Government’s proposals and have been fully coordinated in HICOG.

Because there are signs that measures now being taken are not sufficient to maintain morale, and because the need increases as the sense of separation from the West grows, it is believed that prompt action to put these projects into operation is desirable.

The funds, which would be made available under the projects, would be administered by the Federal Republic under arrangements and controls agreed by HICOG and approved in Washington.

These projects include:

a) further support and expansion of the package program.

b) aid to East Zone residents coming to West Berlin and West Germany.

c) assistance to educational and recreational activities designed to strengthen the courage of East Zone residents.

Financing of these projects calls for a special action in that no funds appropriated directly for this purpose are available. In view of this fact it is suggested that the same procedure might be adopted as was used to support the food program for East Germany in 1953—i.e., the transfer of funds appropriated under the Mutual Defense Assistance Act. Section 513–b of that Act gives the President authority to make limited transfers of funds between titles and between military and economic aid.

The urgency which has been attributed to these projects, and the limited funds needed to carry them out, are believed to warrant the transfer of funds already programmed for other purposes. If these projects are not approved, it is unlikely that other proposals acceptable to the German authorities and HICOG will be forthcoming.

discussion

The projects recommended are designed to build up morale of East Zone residents in their fight against Communism. They are calculated to maintain their vigorous resistance to the police state so that now, as after June 17, the Soviets will continue to be aware of the German opposition to any aggressive action through German territory. They will probably be forced to shift their policy to some extent and soften, rather than toughen, their oppressive occupation.

These programs are based on practical experience with the food package and other German programs gained over a period of more than one year. Since the Germans are already financing projects of these or similar types estimated to total several million DMs each month (exclusive of the labor services), a contribution of $3 million for six months would represent a minor portion of the total, a sum which is consistent with, but scarcely more than the minimum indicated by NSC 5404/1. This paper in its instructions as to aid clearly recommends active financial participation by this Government in those projects.

These projects are the result of careful study since the food projects in 1954 demonstrated in such dramatic fashion the sense of need for contacts and encouragement from the West.

The food package program will continue to operate through channels not openly associated with the U.S., and will exploit these channels more fully.

The other two programs, involving the bulk of the contemplated U.S. expenditures, depend on and take advantage of the considerable interzonal and intersector travel which still continues. While it is not clear how long this travel can be held at present levels, it is believed that if restrictions multiply, more intensive efforts to help those who continue to come will be needed. For this reason, the approved program should be kept as flexible as possible.

It is clear that the channels for aid are still open. Thousands of religious and lay workers, labor leaders, teachers, and businessmen maintain contacts in the East. With additional support from United States sources, their efforts will be enlarged and strengthened. Their message will carry the support of the United States for these oppressed people.

It must be understood that there can be no Government-inspired publicity. Insofar as information is given out on some phases of the program, the United States part can be acknowledged. It is widely known, however, in East and West Germany that this Government is anxious to demonstrate its understanding of the problem and its awareness of the importance of these brave people to German unification.

Most of the projects will be carried out through existing German channels. Some of the items distributed may be of U.S. origin and recognized as such, others will be German substitutes but known to many as U.S. financed.

The projects described are:

a) further aid to the package program which broadens it to include not only food and medicines, but also textiles and clothing. Of the original $15 million allocated in the summer of 1953 to support the food program, less than $700,000 remains at present.

Amount requested: $400,000.

b) encouragement of visits by East Zoners to the Federal Republic and West Berlin and support to German agencies working with such persons.

Amount requested: $2,200,000.

c) education and recreational service to be held in the democratic and pro-Western orientation of those under Communist oppression.

Amount requested: $250,000.

The schedule of expenditures is based on estimates for six months to provide for adjustment and changes with changing opportunities. This manner of releasing funds will provide for additional checks based on reports to be agreed between HICOG and the German authorities.

It is expected that further administrative study may lead to modifications within the framework of the aims and methods here recommended. HICOG’s judgment as to the needs, and the way they can at least in part be met at this time, is now clear.

the projects in detail

A. The Package Program

A request has been made for the package program for $400,000 to procure textiles and clothing.

The Germans have been distributing two to four million packages a month to individual recipients in the past year. The United States has contributed to these packages since October, although this assistance has been on a covert basis to assure that GDR authorities would not cite U.S. support as cause for interfering with the program.

Although the original $15 million for the food program have been almost completely obligated (less than $700,000 remaining), there are stocks of U.S.-financed food in Germany which have not yet been distributed, and which will continue to support the food package program. Textiles and clothing would require additional funds.

It is proposed that this program should continue to have U.S. support in food and medicines and that the program should be expanded to include yard goods and articles of clothing.

The Germans will continue to bear the major part of the costs and the service charges. The number of packages cannot safely be increased by any substantial amount, but the contents can be made to fit more nearly urgent present needs. The package wrapping groups have more than doubled and include trade unions, welfare associations and religious organizations.

By the end of February 1954, 280,928 packages valued at DM 4,104,000 had been mailed as direct obligations against the U.S. contribution. While this represents only a part of the total program, the U.S. contribution has generated benefits far beyond this numerical scope. It has stimulated the population of the Federal Republic to aid the East Zone, enabling people in West Germany hitherto unable to contribute to the program to participate. It has nurtured anti-Communist sentiment on both sides of the curtain between East and West Germany. Above all, it has helped people who merit U.S. help. One of the main classes of East Zone recipients has been the East Zone political prisoner, who depends on these parcels for his very subsistence.

B. Encouragement of Visits and Support of Visitors

A total of $2,200,000 is requested to encourage the visits by East Zone residents and to give them some measure of support during their visits.

The aid would include:

a) contributions to West German organizations which assist East Zone residents.

b) funds to defray the costs of return travel.

It has been generally recognized that the trips to Berlin to pick up food packages were not only inspired by hunger, but even more perhaps by the wish to maintain contacts with the free world. It is believed that financial aid to those who have the courage or the excuse to come will accomplish much of the same result as the stimulating experiences of last year. The dangers to the individual of such a program would, however, be infinitely less. This program is made easier by relative ease of interzonal travel.

The $2,200,000 would be a subsidy and aid to agencies and groups already carrying out some of these aims.

Approximately $2,000,000 would defray the costs of return travel to homes in East Germany. The funds would be distributed through West German governmental authorities to an estimated total of 300,000 visitors with an average one-way fare of DM 30 West.

The Federal Republic Ministry of All-German Affairs has estimated that West German relatives and hosts during the last six months of 1953 paid over DM 120 million from their own pockets to finance visits and return trips of some 1,350,000 East Zone visitors. Individual visits by East Zoners during the first months of 1954 have been declining sharply, and the Federal Ministry believes that the cost of the return travel tickets is the most critical factor limiting these trips. The political advantages accruing from the visits of East Germans to relatives and friends in West Germany are of tremendous potential, and the sum requested may well be the proverbial small key which opens a large door.

A sum of $200,000 is requested for the purpose of facilitating the participation of East Zoners in conferences held in the Federal Republic and West Berlin. The money would be made available through the Ministry of All-German Affairs to such appropriate West German groups as youth, religious, trade union, and welfare organizations, whose meetings and Congress provide a unique opportunity for the intellectual and ideological encouragement of visiting East Germans.

C. Educational and Youth Assistance

HICOG agrees with the German authorities that there are still considerable opportunities of reaching East German youth with democratic education and ideas from the free world. A request is made for $250,000 for this purpose. Of this figure, $200,000 would be designated to support and create facilities in the Federal Republic and West Berlin where East Zone youths can associate with the youth of the Federal Republic. The typical facility is the youth camp designated to attract vacationing East Zone youth and where youth from East and West together can enjoy recreation and the exchange of ideas. In this connection, West German authorities are considering construction at a new summer camp at Berlin-Wannsee.

The amount of $50,000 is requested for establishing Ernst Reuter memorial scholarships at the Free University of Berlin. These scholarships would be awarded to worthy East Zone students, who could then join 4,000 other East German students already studying in the free institutions in West Berlin. The funds requested would be used over a period of several years.

1. Transmitted to the OCB for its consideration under a covering memorandum by Staats, June 16. After the Board Assistants had considered the study, a joint memorandum by the Department of Defense, the Bureau of the Budget, and the FOA was submitted on June 22 to the OCB which then approved the proposal at its meeting on June 23. Stassen informed the President of the approval in a memorandum of June 30, and the President issued his approval for the commitment of funds on the same day. (862B.49/7–154)
2. HICOG’s recommendations, which were formulated after lengthy consultations with authorities of the Federal Republic, were transmitted in telegram 3776 from Bonn, June 4, 1954. (862B.49/6–454)
3. Document 600.
4. Document 156.